FUD meaning 📖
FUD meaning “fear, uncertainty, and doubt,” refers to an attitude of widespread pessimism about a certain asset or market as well as the manipulation of investor or consumer emotions to make them fall for FUD.
Fear, uncertainty, and doubt is said to have been around since the 1920s. But the abbreviation may have started in 1975 when an executive left IBM to form his own business and discovered that FUD was a common tactic used to psychologically manipulate people from leaving the company.
In the crypto context, the phrase is used to influence public perception of certain cryptocurrencies by disseminating negative, misleading, or incorrect information via social media like Twitter and Reddit.
Example sentence: “Dude don’t fall in the FUD puddle, they’re just haters – HODL your coins!”
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How FUD affects crypto users
FUD affects crypto users in numerous ways. They may range from hasty judgments to making financial decisions that are risky and dangerous. One of the most dangerous things that could happen is seeing the coin prices in free fall because of a false FUD alarm.
And how does that happen, you ask? It is simple. A group of people or users who are aware of the ecosystem could give way to negative energy and let it engulf the market. This can lead to others taking actions like selling their assets before the market goes down. This can lead to a perfectly-working market crash because of the false air of FUD.
Thus, FUD can affect crypto users by successfully leading to price fluctuations, increased volatility, pessimistic investor sentiment, and a severe lack of consumer confidence.
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FUD in Bitcoin – real or not?
If you have been following the latest news, you would know that Bitcoin has actually seen the brutality of the bear market and the best of the bull markets since its inception and widespread popularity.
The cyclical nature of crypto and especially Bitcoin has given some people, who are always after easy money-making schemes, a reason to spread misinformation and false news. There are also some skeptics with a big following, consisting of people who don’t look at crypto in a good light and who seem to be on a mission to declare Bitcoin to be in a FUD.
However, in a world where fake news is rampant, one has to identify the right source of information. If you are occasionally seeing posts from the same 3-4 people criticizing Bitcoin and declaring it dead while the numbers tell a completely different story, know that all is well.
However, news like China banning Bitcoin along with other currencies can lead to a state of FUD in the market. But FUD is no reason to be pessimistic about things or flee a situation because the crypto market, like a traditional and centralized market, works in cycles. Up and down.
Thus, a state of FUD is going to be turning into the opposite one way or another. During this time you are advised to HODL on.
How do you detect a FUD in crypto investments?
That’s actually a very smart question! So, how do you tell we’re in a FUD? It is actually a little tricky to do so because psychological inclinations, beliefs, and mentality will outdo data, facts, and numbers any day. Moreover, sometimes market dynamics can also get real messy.
However, experts and bigwigs of crypto have identified some ways that you can use to stay safe from the occasional FUD waves in crypto.
1. News from credible sources
Make sure that your main source of information is not a Discord channel, Telegram, or WhatsApp university but a credible and trustworthy source on the internet. Such sources are not found on chat forums. If anything, fake FUD alarms can be more likely to come from chatting platforms.
However, we would encourage you to keep in touch with experts on reliable groups on chatting platforms because you can get hints and signals from there. When we say not to rely on chatting forums, we mean any random chatting forum.
If you have been a part of a group and are on good terms with the users in the community, discuss the market parameters and dynamics with them by all means. But always verify, cross-check, and do your own research (DYOR).
2. What does the market say?
This is yet another really important point. Sometimes the on-ground sentiment would be bearish and it would feel that crypto winter is just around the corner, but the market would not seem much bothered by all the brouhaha.
This is where you go with the market and trust its workings. By keeping an eye on the trends and the movements, you can assess the potential impact of FUD and how big of an impact it can have.
3. Assumptions and media sensationalism
Social media today is obsessed with sensational news. Crypto media is actually more into numbers. BTC going significantly up and significantly down is directly proportional to more click-through rates and views. Social media would perhaps be your biggest challenge while examining whether we are worth being in a state of FUD.
Thus, if you somehow stop social media from forcing you to make assumptions and worst-case scenarios, you will have overcome 50% of the frenzy and will find yourself in the right headspace to make risk-minimizing decisions.
Final Words
FUD has recently gained widespread popularity because of very volatile crypto markets leading to crypto non-believers saying things like:
- Cryptocurrency is the biggest scam of all time
- You’ll lose all your money in crypto, buy real and tangible property instead!
- Governments will never embrace crypto, there will be bans everywhere
- Crypto is destroying the environment
There’s a name for people like these: FUDsters!
FUDsters are the complete antithesis of Bitcoin and cryptocurrency believers. These crypto doubters include figures such as Warren Buffet, who doesn’t consider crypto a tangible asset thus not worth it. An occasional skeptic is also Elon Musk who has a love/hate relationship with crypto.
Sound like someone you know?
Real crypto enthusiasts know there’s not much truth to it, don’t take FUDsters too seriously and don’t fall in the FUD trap. WAGMI, frens!